we want to start charging a 3 % fee for using credit cards, is there a way to set it up where it cha

[ryanwanner · Accepted solution]

Hello @Kimt !

Here in the US, a credit card surcharge is explicitly against the Terms and Conditions of Square. If you decide to implement a surcharge and Square catches you, your account could be terminated with little notice.

Basically, the credit card companies (Visa, Mastercard, etc) have regulations stating that surcharges can only be applied to credit cards, not debit or prepaid cards. Since Square doesn't have a way to tell the difference between the two currently, the best practice was to put a blanket ban on surcharging or face not being able to process credit cards at all. I'd like to believe engineers are hard at work creating a way for the software to tell the difference between the types of cards, but I have no data saying this is or isn't happening.

If you're adamant about adding a surcharge, the way around it is to raise all your prices by 3% then offer a discount for cash sales. Otherwise, you can always figure out what the average swipe fee per sale is then raise your prices to match. Also, don't forget that your card fees are tax deductible!

[Mandeville]

Could you point me to where the restriction is outlined in the terms and conditions restricts the use of credit card fees?  

Thank you!

-L